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Marketable Equity Securities

9 Months Ended

Sep. 30, 2022

Marketable Equity Securities

Marketable Equity Securities

3. Marketable Equity Securities

Solitario's investments in marketable equity securities are carried at fair value, which is based upon quoted prices of the securities owned. The cost of marketable equity securities sold is determined by the specific identification method. Changes in market value are recorded in the condensed consolidated statement of operations.

At September 30, 2022 and December 31, 2021 Solitario owns the following marketable equity securities:

		September 30, 2022								December 31, 2021
		shares				Fair value (000’s)				Shares				Fair value (000’s)
Kinross Gold Corp			100,000			$	376				100,000			$	581
Vendetta Mining Corp.			8,000,000				291				9,000,000				356
Vox Royalty Corp.			134,055				286				134,055				370
Highland Silver Corp.			200,000				-								-
Total						$	953							$	1,307

The following tables summarize Solitario’s marketable equity securities and adjustments to fair value:

(in thousands)		September 30, 2022				December 31, 2021
Marketable equity securities at cost		$	1,492			$	1,704
Cumulative unrealized loss on marketable equity securities			(539	)			(397	)
Marketable equity securities at fair value		$	953			$	1,307

The following table represents changes in marketable equity securities:

(in thousands)		Three months ended September 30,								Nine months ended September 30,
		2022				2021				2022				2021
Cost of marketable equity securities sold		$	-			$	105			$	212			$	174
Realized loss on marketable equity securities sold			-				(89	)			(159	)			(70	)
Proceeds from the sale of marketable equity securities sold			-				(16	)			(53	)			(104	)
Net (gain) loss on marketable equity securities			13				(39	)			(301	)			(290	)
Change in marketable equity securities at fair value		$	13			$	(55	)		$	(354	)		$	(394	)

The following table represents the realized and unrealized (loss) gain on marketable equity securities:

(in thousands)		Three months ended September 30,								Nine months ended September 30,
		2022				2021				2022				2021
Unrealized gain (loss) on marketable securities		$	13			$	50			$	(142	)		$	(220	)
Realized loss on marketable equity securities sold			-				(89	)			(159	)			(70	)
Net (gain) loss on marketable securities		$	13			$	(39	)		$	(301	)		$	(290	)

During the nine months ended September 30, 2022, Solitario sold 1,000,000 shares of Vendetta Mining Corp. (“Vendetta”) common stock for proceeds of $53,000 and recorded a loss on sale of $159,000 on the date of sale. Solitario did not sell any marketable equity securities during the three months ended September 30, 2022.

During the three months ended September 30, 2021, Solitario sold 500,000 shares of Vendetta common stock for proceeds of $16,000 and recorded a loss on sale of $89,000. During the nine months ended September 30, 2021, Solitario sold (i) 1,510,000 shares of Vendetta common stock for proceeds of $69,000 and recorded a loss on sale of $91,000; (ii); 430,000 shares of TNR Gold Corp. common stock for proceeds of $26,000 and recorded a gain on sale of $19,000, and (iii) 3,200 shares of Vox Royalty Corp. (“Vox”) for proceeds of $9,000 and recorded a gain on sale of $2,000.

Other Income:

During the three months ended September 30, 2022, Solitario sold rights to certain exploration data on a non-owned mineral property upon which Solitario had previously done exploration activities. The data was sold to Highland Silver Corp., a Canadian exploration company (“Highland”) for $20,000 cash and 200,000 shares of Highland common stock. The Highland common stock carried a restrictive legend and was not available for trade on the date of the sale and no value was assigned to the common stock. Solitario recorded $20,000 of other income on the date of the sale. Any future changes to the value of the Highland common stock owned by Solitario will be recorded as changes in value of marketable equity securities.